Drop Warning for Leading Altcoin: Why Do Analysts Expect a Drop?

Altcoin markets are known as one of the most dynamic and rapidly changing areas of the financial world. In these markets, prices often experience sudden fluctuations and present great opportunities as well as great risks for investors. Therefore, investors not only monitor the prices of cryptocurrencies, but also try to predict future price movements using various analysis methods and indicators.

In this context, Benjamin Cowen, one of the most popular analysts in the cryptocurrency markets, issued an important warning about the price of Ethereum (ETH). The point Cowen draws attention to is that the price of Ethereum may have entered a potential downtrend. To support this warning, Cowen emphasized the importance of the Bull Market Support Band (BMSB), which is widely used in technical analysis.

Bull Market Support Band is an indicator often used to determine whether the price of an asset is in an uptrend. BMSB consists of a combination of the 20-week simple moving average and the 20-week exponential moving average. If an asset falls below these bands, this usually signals the start of a downtrend.

According to Cowen’s analysis, Ethereum’s price has recently fallen below the Bull Market Support Band. This means that the altcoin price may trend lower in the future. Cowen stated that Ethereum last fell to this level 30 weeks ago and is now closing below this level again.

According to Cowen, Ethereum’s price has experienced a significant decline in the previous two periods, which is very similar to the current moment when it is closing below BMSB.

“In both cases, after falling below the Bullish Sign Support Band, the Ethereum/dollar trading pair dropped another approximately 50%…

NEWS CONTINUES BELOW

…50% from here [yaklaşık 2.970 dolar] “A move down would take ETH all the way back to $1,400.”

The widely followed analyst predicts that the Ethereum/Bitcoin (ETH/BTC) pair will bottom in the coming weeks, but claims that it may take longer for the Ethereum/dollar (ETH/USD) pair to bottom out.

You can access current market movements here.

Writer Şerife Pek Doğru about :

I entered the crypto industry with the investment I made in 2019. In the same year, I started writing about blockchain technology and currently work as a writer at KoinFinans. Legal regulations regarding cryptocurrencies are one of the topics I follow.